Low-income buyers can mortgage new homes
Low-income buyers will be allowed to mortgage their new houses or apartments to access loans from the VND30 trillion (US$1.3 billion) housing stimulus package.
This was announced in a joint-circular by the Ministry of Construction, the State Bank of Vietnam and the Ministry of Justice.
The move is expected to help low income groups and stimulate the dormant real estate market, thus improving liquidity, said Minister of Construction Trinh Dinh Dung.
Dung pointed out that the main reason for creating the package is to help low-income earners have their own houses or apartments. He said in the circular that this package will be a breakthrough in regulations as it will allow such home buyers to access loans.
Previously, banks asked home buyers to provide proof of income and to prove their ability to repay the debt, or home buyers are asked to use other mortgages to borrow money from the package.
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Deputy Minister Nguyen Tran Nam added that home buyers will now be required to submit only one certificate from their workplace regarding their housing situation and income, instead of the two certificates that are previously required: one from the workplace and another from the home buyer's residential area.
Nam said the regulation will help home buyers to prepare documents and follow the necessary procedures so that they can speed up the process of buying a house.
He said the ministry will check the validity of the certificates at the buyer's workplace, adding that both the office and the home buyer will be held responsible for their declaration.
Statistics from the ministry showed that by February 17, the central bank had approved lending contracts to 17 realty companies to the tune of VND1.46 trillion (US$69.5 million), of which, VND536 billion (US$25.5 million) was disbursed to 11 enterprises.
More than 2,270 home buyers are scheduled to receive loans worth a total of VND821 billion (US$39 million), of which VND505 billion (US$24 million) is disbursed to 2,261 people.